Belt and Road

Source: Economist Intelligence Unit

Political Highlights

PPapua New Guinea is a constitutional monarchy. Queen Elizabeth II is the head of state, represented by the governor-general, Robert Dadae, who is nominated by the national parliament. The country has three levels of government - national, provincial and local. The prime minister is the head of government. James Marape replaced Peter O’Neill as Primer Minister in May 2019 following O’Neill’s resignation. The national legislature is a unicameral national parliament with 111 members elected for five-year terms. The next parliamentary poll is scheduled to be held in 2022.

Economic Trend

* Forecast ^ Estimate
Source: Economist Intelligence Unit

Papua New Guinea is highly reliant on the resources industry, particularly in oil, gas and gold. The economic growth slowed sharply in 2018 which reflected the shut down of its natural gas processing plant after a powerful 7.5 magnitude earthquake in February 2018. The government has prioritized the development of the agricultural sector but the sector will continue to be constrained by the country’s vulnerability to extreme weather events, periodic drought, as well as lack of infrastructure in rural areas. Meanwhile, the country maintains years of current-account surplus. Its foreign-exchange reserves increased to US$2.2 billion by end-2018, from US$1.7 billion a year earlier. In February 2019, Moody’s changed the rating outlook on Papua New Guinea's issuer ratings to stable from negative and affirmed the “B2” issuer and senior unsecured ratings. The change of outlook reflects the constraints on government liquidity will continue to ease. In particular, the continuation of the government's strategy to use proceeds from foreign-currency denominated commercial and concessional borrowings to repay short-term and high cost domestic debt will reduce refinancing risk.

Hong Kong – Papua New Guinea Trade

Source: Census and Statistics Department of Hong Kong

Total exports from Hong Kong to Papua New Guinea decreased by 8.2% from HK$229.1 million in 2017 to HK$210.3 million in 2018. The top three export categories to Papua New Guinea were: (1) telecommunications and sound recording and reproducing apparatus and equipment (+0.6%), (2) office machines and automatic data processing machines (+7.0%), and (3) electrical machinery, apparatus and appliances, and electrical parts thereof (-19.3%), which represented 69.3% of total exports to Papua New Guinea.

Source: Census and Statistics Department of Hong Kong

HKECIC Underwriting Experience

The Hong Kong Export Credit Insurance Corporation (HKECIC) imposes no restrictions on covering Papua New Guinea buyers. The Corporation’s underwriting experience on Papua New Guinea has been satisfactory with one payment difficulty case reported during the past 12 months (from December 2018 to November 2019).

Please click here to download the charts (PDF format).

Last update: 14 January 2020

Source: Economist Intelligence Unit

Political Highlights

Indonesia is the fourth most populous nation in the world. It is a presidential republic wherein the president serves as both the head of state and head of government for a term of five years. Political environment has been relatively stable since the country’s first direct presidential election in 2004. The incumbent president Joko Widodo assumed office since 2014 and won his second term at the presidential election held in April 2019. The national legislative body (People's Consultative Assembly) was made up by the House of People’s Representatives (lower house) with 575 members and the Regional Representatives’ Council (upper house) with 136 members. The next elections are scheduled for 2024.embers. The next elections are scheduled for 2024.
 

Economic Trend

*Estimate ^Forecast
Source: International Monetary Fund (IMF)

Indonesia is the largest economy and the only G20 member in Southeast Asia. The economy has continued to perform well in recent years and stabilized at above 5% per annum, thanks to robust domestic demand which offset a decline in net exports. In 2019, the Indonesia’s central bank has cut its benchmark interest rate by four times to 5.0% In a bid to stimulate growth, adding that it would keep its policy accommodative to support economic growth in 2020. Despite ongoing global uncertainty, Indonesia’s economic outlook continues to be positive over medium term, underpinned by strong private consumption as well as infrastructure-related investment activities. Poverty reduction remains one of the biggest challenges to Indonesia. Although poverty rate has declined sharply by more than half since 1999 to 9.8% in 2018, about 25.9 million Indonesians (around 10% of the population) still live below the poverty line, according to the World Bank.

Hong Kong – Indonesia Trade

Source: Census and Statistics Department of Hong Kong

Total exports from Hong Kong to Indonesia decreased by 10.9% from HK$20,421 million in 2017 to HK$19,970 million in 2018. The top three export categories to Indonesia were: (1) telecommunications and sound recording and reproducing apparatus and equipment (-32.2%), (2) textile yarn, fabrics, made-up articles and related products (-1.2%), and (3) electrical machinery, apparatus & appliances and electrical parts thereof (-1.7%), which represented 51.2% of total exports to Indonesia.

Source: Census and Statistics Department of Hong Kong

HKECIC Underwriting Experience

The Hong Kong Export Credit Insurance Corporation (HKECIC) imposes no restrictions on covering Indonesian buyers. For 2018, the number and amount of credit limit applications on Indonesia decreased 30.4% and 86.2% respectively, while insured business increased by 6.5%. Major insured products were chemical products, clothing and plastic articles, which represented 58.8% of HKECIC’s insured business on Indonesia. The Corporation’s underwriting experience on Indonesia has been satisfactory, with one payment difficulty case and two claim payment cases reported in the past 12 months (December 2018 to November 2019).

Please click here to download the charts (PDF format).

Last update: 24 December 2019

Source: Economist Intelligence Unit

Political Highlights

Mongolia is a landlocked nation in East Asia. The President, elected to serve a four-year term by popular vote, is both the Head of State and Commander-in-Chief of the armed forces. The President appoints the Prime Minister, who is the Head of Government and serves a term of four years. The country adopts a unicameral legislative with 76 members in the State Great Khural (parliament). In 2016, the Mongolian People’s Party (MPP) won a landslide victory by securing 65 out of 76 seats in the general election. However, the MPP lost in the 2017 presidential election to the Democratic Party’s (DP) candidate Khaltmaagiin Battulga. Election for the president and parliament are due to be held in June 2020 and June 2021 respectively.

The two neighbor countries China and Russia exert significant influence over the landlocked Mongolia. With the signing of the China-Mongolia-Russia economic corridor in June 2016, which is one of the six priority corridors envisioned by China’s Belt and Road Initiative, the Sino-Mongolian relations entered a new era of economic cooperation that will be vital to the country’s economic recovery and long term stability.
 

Economic Trend

*Estimate ^Forecast
Source: Economist Intelligence Unit, International Monetary Fund

Mongolia possesses valuable deposits of natural resources, including coal, gold, copper and other precious metals. Economic growth is heavily reliant on its mining sector, which accounts for about 90% of the country’s exports and half of its GDP. Mongolia has experienced a sharp recovery in real GDP growth in recent years, primarily due to a combination of stronger mineral exports and a significant rise in commodity prices, as well as a ramp-up in foreign direct investment. In November 2019, S&P affirmed Mongolia’s long-term sovereign rating at 'B' with a stable outlook. The affirmation reflects S&P’s view that Mongolian government's fiscal performance continues to improve owing to higher commodity prices, expenditure discipline, and sound economic growth.

Hong Kong – Mongolia Trade

Source: Census and Statistics Department of Hong Kong

Total exports from Hong Kong to Mongolia increased by 28.1% from HK$ 248 million in 2017 to HK$ 318 million in 2018. The top three export categories to Mongolia were: (1) office machines and automatic data processing machines (-9.1%), (2) telecommunications and sound recording and reproducing apparatus and equipment (+103.1%), and (3) beverages (+58.6%), which represented 74.9% of total exports to Mongolia.

Source: Census and Statistics Department of Hong Kong

HKECIC Underwriting Experience

The Hong Kong Export Credit Insurance Corporation (HKECIC) imposes no restrictions on covering Mongolian buyers. The Corporation’s underwriting experience on Mongolia has been satisfactory with no claim payment or payment difficulty case reported during the past 12 months (from December 2018 to November 2019).

Please click here to download the charts (PDF format).

Last update: 20 December 2019

Source: Economist Intelligence Unit (EIU)

Political Highlights

Solomon Islands became a member of the Commonwealth in 1978. It is a constitutional monarchy, with Queen Elizabeth II as head of state, represented by Governor-General, who must be a citizen of the country and is elected by Parliament. In July 2019, David Vunagi replaced Frank Kabui as the Governor-General following Kabui’s completion of his second term in office. The national legislature is unicameral, with 50 seats elected by universal suffrage for a four year term. In April 2019, Manasseh Sogavare was elected as the prime minister. He heads the Democratic Coalition for Advancement government, which is a four-party group comprising of the Democratic Alliance Party, Our Party (led by Mr Sogavare), the Kadere Party and the Peoples First Party. The four parties hold only 12 seats in parliament, but together with the support from independent legislators, the coalition government has total support of 33 members in the parliament. The next parliamentary election is scheduled for early 2023.

Economic Trend

* Forecast
Source: International Monetary Fund (IMF)

Solomon Islands is rich in undeveloped mineral resources such as lead, zinc, nickel, and gold, while most of the manufactured goods and petroleum products must be imported. A large portion of population relies on agriculture, fishing, and forestry for its livelihood. Australia and New Zealand are the major providers of security, technical and financial support to the Solomon Islands. The country’s future economic growth will be supported by infrastructure development, investment in expansion of tuna processing and telecommunication sector, and construction of the Tina River hydropower project backed by the Australian government.

Hong Kong – Solomon Islands Trade

Source: Census and Statistics Department of Hong Kong

Total exports from Hong Kong to Solomon Islands increased by 27.0% from HK$62.6 million in 2017 to HK$79.5 million in 2018. The top three export categories to Solomon Islands were: (1) power generating machinery and equipment (+182.8%), (2) telecommunications and sound recording and reproducing apparatus and equipment (-36.7%), and (3) articles of apparel and clothing accessories (+185.4%), which represented 75.3% of total exports to Solomon Islands.

Source: Census and Statistics Department of Hong Kong

HKECIC Underwriting Experience

The Hong Kong Export Credit Insurance Corporation (HKECIC) imposes no restrictions on covering buyers in Solomon Islands. In the past 12 months (December 2018 to November 2019), there was no insured business on Solomon Islands.

Please click here to download the charts (PDF format).

Last update: 9 December 2019

*Data was unavailable
Source: Economist Intelligence Unit (EIU)

Political Highlights

The Kingdom of Lesotho (Lesotho) became members of the Commonwealth in 1966. It is a constitutional monarchy. The King’s functions are largely ceremonial. Motsoahae Thomas Thabane is the Prime Minister and acts as the Head of Government. The national legislature is a bicameral parliament comprises of a 120 members National Assembly with 80 members elected directly and 40 members elected by proportional representation, and a 33 non-elected member Senate with 22 traditional chiefs and 11 members whom are nominated by the King on the advice of the Prime Minister. The ruling coalition led by Thabane’s All Basotho Convention (ABC), enjoys only a slim majority of three seats. The next general election is due in 2022.

Economic Trend

*Forecast
Source: Economist Intelligence Unit

Lesotho is a landlocked country that is entirely surrounded by South Africa. The Lesotho’s economy is mainly based on water sold to South Africa and exported diamonds. Other economic activities include manufacturing, preliminary in garment, agriculture, and livestock. Approximate half of the population earns a living through livestock or crop cultivation, while Lesotho also depends heavily on remittance from those working in South Africa. The economic growth in 2019-2020 will be constrained by a downturn in the mining sector, especially low price of diamond, and continued sluggish economic growth in South Africa, which Lesotho has close economic ties.

Hong Kong – Lesotho Trade

Source: Census and Statistics Department of Hong Kong

Total exports from Hong Kong to Lesotho increased by 14.0% from HK$72.9 million in 2017 to HK$83.2 million in 2018. The top three export categories to Lesotho were: (1) textile yarn, fabrics, made-up articles, and related products (-15.0%), (2) telecommunications and sound recording and reproducing apparatus and equipment (+507.7%), and (3) office machines and automatic data processing machines (+14,141.1%), which represented 53.1% of total exports to Lesotho.

Source: Census and Statistics Department of Hong Kong

HKECIC Underwriting Experience

The Hong Kong Export Credit Insurance Corporation (HKECIC) imposes no restrictions on covering buyers in Lesotho. In the past 12 months (December 2018 to November 2019), there was no insured business on Lesotho.

Please click here to download the charts (PDF format).

Last update: 9 December 2019

Source: Economist Intelligence Unit (EIU)

Political Highlights

The country is a presidential republic where the president is both head of government and head of state. The country has been in turmoil under the administration of Yameen, who made intense spending on infrastructure and ordered a state of emergency in February 2018 and jailed opponents across the legislative and judiciary. Meanwhile, Yameen lost surprisingly in his re-election bid in September 2019 and initially conceded defeat in June 2018. His only challenger, Ibrahim Mohamed Solih of the Maldivian Democratic Party (MDP), was elected as the President of the Maldives. The national legislature is a unicameral parliament with 87 members. In April 2019, Solih's MDP, which leads the governing coalition, secured a sweeping majority with 65 seats in the parliamentary election. The government will pursue policies designed to put the country's public finances back on a more sustainable footing after previous government intense spending. The next presidential and parliamentary elections are scheduled for September 2023 and April 2024 respectively.

Economic Trend

* Forecast
Source: International Monetary Fund (IMF)

Maldives is a small geographically dispersed archipelago island nation with limited natural resources. It is mainly reliant on tourism and fishing. The tourism sector accounts for nearly 25% of total GDP and its high-end tourism has propelled the economy’s strong expansion over recent decades. However, under the Yameen’s administration, the surge in infrastructure investment led to high and rising government debts. The continuous current account deficit was attributed to wide merchandise trade deficit mainly related to construction-related imports. In November 2019, Moody's affirmed Maldives' B2 sovereign rating and maintained the negative outlook. The rating affirmation reflects Maldives' competitive tourism sector and more stable political environment, balanced by the country’s weak institutional strength. The decision to maintain the negative outlook reflects the country's continued fiscal weaknesses and fragile external position that put pressure on macroeconomic stability.

Hong Kong – Maldives Trade

Source: Census and Statistics Department of Hong Kong

Total exports from Hong Kong to Maldives increased by 54.3% from HK$113 million in 2017 to HK$175 million in 2018. The top three export categories to Maldives were: (1) office machines and automatic data processing machine (+1,802.9%), (2) telecommunications and sound recording and reproducing apparatus and equipment (-4.6%), and (3) electrical machinery, apparatus and appliances, and electrical parts thereof (+22.2%), which represented 70.9% of total exports to Maldives.

Source: Census and Statistics Department of Hong Kong

HKECIC Underwriting Experience

The Hong Kong Export Credit Insurance Corporation (HKECIC) imposes no restrictions on covering buyers in Maldives. In the past 12 months (from December 2018 to November 2019), there was no claim payment or payment difficulty case reported.

Please click here to download the charts (PDF format).

Last update: 9 December 2019

*Most recent data available
Source: Economist Intelligence Unit (EIU)

Political Highlights

Union of the Comoros (Comoros) is a Federal Islamic republic with its legal system based on the Napoleonic code and sharia (Islamic law). The president is the Head of State, directly elected by simple majority popular vote in 2 rounds for a 5-year term. In March 2019, Colonel Azali Assoumani was re-elected as president for a second consecutive term following a constitutional changes in 2018 that allowed for a renewable term. The country consists of three islands, Grande Comore, Anjouan and Moheli. Each island has their own parliament, while the country’s national legislature is a 33-members parliament with 24 members elected by direct universal suffrage and 9 members appointed by the three islands. The next legislative election is scheduled for 2020.

Economic Trend

* Forecast
Source: International Monetary Fund (IMF)

Comoros is one of the world’s smallest economies with few natural resources. France as the country’s former colonialist, remains as a key trading partner and bilateral donor. The country’s agriculture sector, including fishing, hunting, and forestry, accounts for about 50% of GDP and employs a majority of the working population. The economy was hit by Cyclone Kenneth in April 2019, causing widespread destruction, primarily on the agricultural sector. In July 2019, International Monetary Fund (IMF) approved an emergency financial assistance of about US$12.3mn for Comoros to facilitate rehabilitation. The economy is expected to pick up in 2020 as a result of recovery in agricultural sector, as well as a project funded by the African Development Bank for construction of new generators and the rehabilitation of thermal power plants that will spur the industrial and services sectors.

Hong Kong – Comoros Trade

Source: Census and Statistics Department of Hong Kong

Total exports from Hong Kong to Comoros increased by 657.8% from HK$2.8 million in 2017 to HK$21.4 million in 2018. The top three export categories to Comoros were: (1) telecommunications and sound recording and reproducing apparatus and equipment (+496.2%), (2) office machines and automatic data processing machines (nil in last year), and (3) electrical machinery, apparatus and appliances, and electrical parts thereof (nil in last year), which represented 99.6% of total exports to Comoros.

Source: Census and Statistics Department of Hong Kong

HKECIC Underwriting Experience

The Hong Kong Export Credit Insurance Corporation (HKECIC) imposes no restrictions on covering buyers in Comoros. In the past 12 months (December 2018 to November 2019), there was no insured business on Comoros.

Please click here to download the charts (PDF format).

Last update: 3 December 2019

*Most recent data available
Source: Economist Intelligence Unit (EIU), World Trade Organisation (WTO)

Political Highlights

Benin is a unitary republic. The president is the head of the state, elected by universal suffrage for a maximum of two terms. The national legislature is a national assembly with 83 seats, elected by universal suffrage for a four-year term. In 2018, President Patrice Talon strengthened his grap of power by co-opting with the Constitional Court to create a special court, that prosecute his political rivals and push forward his legislation. In addition, the country’s electoral commission declared that only two parties that were loyal to President Patrice Talon were eligible to contest seats in the National Assembly. These ultimately prompted a mass boycott of the election and in the end, less than 23% of all registered voters cast their ballots. The next presidential and legislative elections are scheduled for 2021 and 2024 respectivel.

Economic Trend

* Forecast
Source: International Monetary Fund (IMF)

Benin is a free market economy with cotton as its key export commodity. The economy grew by 6.7% in 2018 as a result of improved performance in agriculture, particularly in cotton, industrial sector, driven by cotton ginning plants, and building and public works sector. The country’s future growth will be underpinned by strong port activity, firm growth in agriculture and high private investment, as well as the lagged effect of recent large public investment in infrastructure. In November 2019, Nigeria, Niger and Benin agreed to set up a monitoring and patrol body to tackle smuggling, following months of border closure and dispute between the West African countries.

Hong Kong – Benin Trade

Source: Census and Statistics Department of Hong Kong

Total exports from Hong Kong to Benin increased by 82% from HK$50.3 million in 2017 to HK$90.7 billion in 2018. The top three export categories to Benin were: (1) telecommunications and sound recording and reproducing apparatus and equipment (+111.1%), (2) electrical machinery, apparatus and appliances, and electrical parts thereof (+6.3%), and (3) office machines and automatic data processing machines (+208.1%), which represented 89.7% of total exports to Benin.

Source: Census and Statistics Department of Hong Kong

HKECIC Underwriting Experience

The Hong Kong Export Credit Insurance Corporation (HKECIC) imposes no restrictions on covering buyers in Benin. In the past 12 months (November 2018 to October 2019), there was no insured business on Benin.

Please click here to download the charts (PDF format).

Last update: 22 November 2019

Source: Economist Intelligence Unit (EIU)

Political Highlights

Malaysia is a constitutional monarch. The Yang di-Pertuan Agong (or the King) is the Head of State, while the king is elected by the rulers of the country’s nine states, who take turns in serving five-year terms. Pahang's Sultan Abdullah Ri'ayatuddin, was installed as Malaysia's 16th Malaysian King on 30 July 2019. In May 2018, current prime minister Mahathir Mohamad and his four parties’ alliance Pakatan Harapan (PH) won a historic victory in national elections over Barisan Nasional (BN)  that has ruled the country for six decades. The national legislature is a bicameral deferral parliament comprise of 222 directly elected members in the House of Representatives (Dewan Rakyat, the lower house) and 70 members in the Senate (Dewan Negara, the upper house) with 26 elected from the state legislatures and 44 appointed by the king. The government has made its priority to cut the country’s debts and pledged to lower the cost of living by replacing the goods and services tax with a sales and services tax, subsidies applied to certain fuel types and the minimum wage is set to rise. The next general election is scheduled for 2023

.

Economic Trend

* Forecast
Source: Economist Intelligence Unit

Malaysia is the third largest economy in Southeast Asia. It is an export-orientated economy with exports accounting for roughly 70% of GDP. Major exports include electrical and electronics products, chemicals, machinery, appliances and manufactured metals. In terms of natural resources, Malaysia exports crude oil, liquefied natural gas, palm oil and natural rubber. The economy slowed down in 2018 due to subdued demand for the country’s largest export of electronic and electrical goods, amid US-China trade tension. Meanwhile, years of current account surplus worked as a buffer to unexpected shocks in global financial market. In July 2019, S&P affirmed Malaysia’s issuer credit rating at “A-“ with a stable outlook. The rating reflects the country's strong institutional profile, sound economic fundamentals and prudent debt management. The affirmation also shows that the increase in government’s direct debt does not affect Malaysia’s sovereign credit ratings, especially when the government’s overall debt and liabilities have been reduced.

Hong Kong – Malaysia Trade

Source: Census and Statistics Department of Hong Kong

Total exports from Hong Kong to Malaysia increased by 22.3% from HK$28.7 billion in 2017 to HK$35.1 billion in 2018. The top three export categories to Malaysia were: (1) electrical machinery, apparatus and appliances, and electrical parts thereof (+20.1%), (2) telecommunications and sound recording and reproducing apparatus and equipment (+25.7%), and (3) office machines and automatic data processing machines (+13.2%), which represented 67.6% of total exports to Malaysia.

Source: Census and Statistics Department of Hong Kong

HKECIC Underwriting Experience

The Hong Kong Export Credit Insurance Corporation (HKECIC) imposes no restrictions on covering buyers in Malaysia. For 2018, the number and amount of credit limit applications on Malaysia decreased by 8.1% and increased by 13.9% respectively, and insured business decreased by 41.6%. Major insured products were electronics, plastic articles, chemical productswhich represented 56.5% of HKECIC’s insured business on Malaysia. The Corporation’s underwriting experience on Malaysia has been satisfactory, with no payment difficulty or claim payment case reported in the past 12 months (November 2018 to October 2019).

Please click here to download the charts (PDF format).

Last update: 6 November 2019

Source: Economist Intelligence Unit (EIU)

Political Highlights

Thailand is a constitutional monarchy. King Maha Vajiralongkorn, officially known as King Rama X, was officially crowned in May 2019, almost three years after the death of his father King Bhumibol Adulyadej. Thailand is currently run by a military government headed by former army chief Prayuth Chan-ocha, who serves as prime minister. The national legislature is a bicameral parliament comprise of a 250-seat Senate (upper house) and a 500-seat House of Representatives (lower house) consisting 350 constituency seats and 150 party-list seats, elected democratically. In an effort to boost the country’s economic performance, the government will continue to focus on improving investment environment and pursue the public-investment drive in infrastructure.

Economic Trend

*Forecast
Source: Economist Intelligence Unit

Thailand is the second-largest economy in Southeast Asia, with export and tourism sectors together generating more than a fifth of total GDP. Economic growth accelerated since 2014 bolstered by favorable global economic conditions and a pickup in domestic investment. The country’s sustained current account surpluses and higher capital inflows over the past several years have driven an appreciation of the Thai baht and facilitated the accumulation of foreign reserves. Meanwhile, the strong currency comparing to other Asian countries has hurt the competitiveness of the country’s exports. Economic growth in 2019 is expected to slow down following a drought that affected the farming sector, as well as slowing exports. In August 2019, the government announced a US$10 billion economic stimulus package after the country reported that its economy grew just 2.3% in Q2 2019, the slowest rate in nearly five years. In July 2019, Moody’s affirmed Thailand’s Baa1 issuer and senior unsecured ratings and changed the outlook to positive from stable. The positive outlook is supported by Moody's view that, as Thailand's track record of macroeconomic stability lengthens, the government's investment in physical and human capital may raise the economy's competitiveness. This would help offset the drag on Thailand's growth potential from skills gaps and an ageing population

.

Hong Kong – Thailand Trade

Source: Census and Statistics Department of Hong Kong

Total exports from Hong Kong to Thailand increased by 11.9% from HK$54.1 billion in 2017 to HK$60.6 billion in 2018. The top three export categories to Thailand were: (1) telecommunications and sound recording and reproducing apparatus and equipment (+23.0%), (2) electrical machinery, apparatus and appliances, and electrical parts thereof (+11.3%), and (3) office machines and automatic data processing machines (+9.8%), which represented 63.0% of total exports to Thailand.

Source: Census and Statistics Department of Hong Kong

HKECIC Underwriting Experience

The Hong Kong Export Credit Insurance Corporation (HKECIC) imposes no restrictions on covering buyers in Thailand. For 2018, the number and amount of credit limit applications on Thailand increased by 34.4% and 62.1% respectively, while insured business decreased by 19.3%. Major insured products were electronics, furniture and cameras & optical goods, which represented 68.6% of HKECIC’s insured business on Thailand. The Corporation’s underwriting experience on Thailand has been satisfactory, with no payment difficulty or claim payment case reported in the past 12 months (November 2018 to October 2019).

Please click here to download the charts (PDF format).

Last update: 4 November 2019

* Most recent data available
Source: Economist Intelligence Unit

Political Highlights

Vietnam is a one-party socialist republic. The ruling Communist Party of Vietnam (CPV) has been in power since the end of the Vietnam war in 1975. The president is the head of the state. CVP General Secretary Nguyen Phu Trong took the role of president in September 2018, following the death of former President Tran Dai Quang, making him the first person to hold both titles since the nation’s founder Ho Chi Minh in the 1960s. The national legislature is a unicameral National Assembly with 500 members typically serves a five-year term. The country has in recent years stepped up its fight against corruption with several senior government officials and executives of state-owned enterprises arrested and jailed.  Vietnam,ranked 117th amongst 180 countries and territories in 2018 Corruption Perceptions Index (CPI) by Transparency International. On a diplomatic front, Vietnam has long-standing territorial disputes with China in the South China Sea which are unlikely to be resolved in near term.

Economic Trend

* Forecast
Source: Economist Intelligence Unit (EIU)

Vietnam successfully positioned itself as the main low-cost regional alternative to China for export-orientated manufacturing. The country’ competitive unit labor costs relative to peers (Malaysia, Thailand, and Indonesia) attracted strong foreign direct investments in the manufacturing industry. The country’s economic growth accelerated to 7.1% in 2018, benefitted from higher domestic demand, strong export growth and economic reforms. Vietnam is expected to remain one of the fastest-growing ASEAN economies and a regional outperformer for exports given the ongoing US-China trade conflict that have accelerated the shift of production from China to Vietnam.

Hong Kong – Vietnam Trade

Source: Census and Statistics Department of Hong Kong

Total exports from Hong Kong to Vietnam increased by 4.5% from HK$79.6 billion in 2017 to HK$83.2 billion in 2018. The top three export categories to Vietnam were: (1) electrical machinery, apparatus and appliances, and electrical parts thereof (+21.3%), (2) telecommunications and sound recording and reproducing apparatus and equipment (-25.3%), and (3) textile yarn, fabrics, made-up articles, and related products (-1.5%), which represented 47.8% of total exports to Vietnam.

Source: Census and Statistics Department of Hong Kong

HKECIC Underwriting Experience

The Hong Kong Export Credit Insurance Corporation (HKECIC) imposes no restrictions on covering buyers in Vietnam. For 2018, the number and amount of credit limit applications on Vietnam decreased by 13.6% and 9.8% respectively, and insured business decreased by 4.9%. Major insured products were electronics, electrical appliance and textiles, which represented 74.1% of HKECIC’s insured business on Vietnam. The Corporation’s underwriting experience on Vietnam has been satisfactory, with no payment difficulty or claim payment case reported in the past 12 months (October 2018 to September 2019).

Please click here to download the charts (PDF format).

Last update: 15 October 2019

* Most recent data available
Source: Economist Intelligence Unit (EIU), World Trade Organisation (WTO)

Political Highlights

Cambodia is a constitutional monarchy. The King is the Head of the State and Prime Minister is the Head of Government. The national legislature is a bicameral parliament consists of 125-seat National Assembly (lower house) and 62-seat Senate (upper house). Prime Minister Hun Sen has been ruling Cambodia since 1985 and his Cambodian People’s Party (CPP) maintains firm grip of power. The Cambodia National Rescue Party (CNRP), the main opposition party, has been dissolved by the Supreme Court in November 2017 for allegedly plotting to overthrow Hun Sen’s government. In February 2018, the CPP swept the country’s Senate election by winning all 58 elected seats, further entrenching the dominance of the CPP. In the July 2018 general election, the CPP secured all of the seats in the lower house. Hun Sen and CPP’s political scene remained unimped. Hun Sen expressed his desire to remain in power at least until the 2028 election. The next general election is due to be held in 2023.

.

Economic Trend

* Forecast  
Source: International Monetary Fund (IMF)

Since the late 1990s, Cambodia’s open door policy to investors and structural support from the international community have led to economic expansion of roughly 7% per annum. Economic growth has been driven by garments and footwear exports, tourism as well as real estate and construction activities. The Cambodian monthly minimum wage in the garment sector has surged from US$140 in Janurary 2016 to US$182 in Janurary 2019, and is set to rise to US$190 from Janurary 2020. Though there was a declining competitiveness in the garment industry, the country’s economic growth will remain relatively robust, averaging 6.3% a year in 2020-24. In October 2019, Moody’s affirmed Cambodia’s long-term issuer rating at B2 and maintained its stable outlook. The rating is supported by its robust GDP growth prospects, modest and highly affordable government debt, and low external vulnerabilities. Meanwhile, slowing growth in China could also present spillover risks for Cambodia, due to its deep economic and financial linkages with the country.

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Hong Kong – Cambodia Trade

Source: Census and Statistics Department of Hong Kong

Total exports from Hong Kong to Cambodia increased by 5.9% from HK$7.1 billion in 2017 to HK$7.6 billion in 2018. The top three export categories to Cambodia were: (1) textile yarn, fabrics, made-up articles, and related products (+1.9%), (2) telecommunications and sound recording and reproducing apparatus and equipment (-9.2%), and (3) articles of apparel and clothing accessories (-6.6%), which represented 62.4% of total exports to Cambodia.

Source: Census and Statistics Department of Hong Kong

HKECIC Underwriting Experience

The Hong Kong Export Credit Insurance Corporation (HKECIC) offers coverage on Cambodia buyers with payment terms in Irrevocable Letter of Credit (ILC). In the past 12 months (from October 2018 to September 2019), there was no insured business on Cambodia.

 
Please click here to download the charts (PDF format).

Last update: 14 October 2019

Source: Economist Intelligence Unit (EIU), World Trade Organisation (WTO)

Political Highlights

Singapore is parliamentary democracy, with an elective, non-executive presidency. The president, PAP-endorsed candidate Halimah Yacob, was elected for a six-year term in September 2017. The Prime Minister Lee Hsien Loong is the leader of the majority People's Action Party (PAP) in parliament. The governing PAP has been in power since 1959 and is currently preparing for a leadership transition, which involves younger leaders from the fourth generation taking over central positions in the party and government. The legislature is a unicameral parliament consisting of 89 elected members. 13 members of parliament (MPs) are directly elected from single-member constituencies, and 76 are elected in teams of 4-6 to represent the 15 group-representation constituencies. The next general election is scheduled for January 2021, and the next presidential election is scheduled for 2023.

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Economic Trend

^Estimate *Forecast 
Source: International Monetary Fund (IMF)

Singapore is one of the world’s most business-friendly regulatory environment and is ranked among the world’s most competitive economies. Its strategic location between the East and West make it one of the world’s top transportation hubs for sea and air cargo. In the decades after independence in 1965, Singapore rapidly developed from a low-income country to a high-income country. The overall growth of the Singapore economy was 3.2% in 2018. Value-added manufacturing, particularly in the electronics and precision engineering sectors, remain key drivers of growth, as are the services sector, particularly the information and communications industries, and the finance & insurance industries. In August 2019, Fitch has affirmed Singapore's long-term foreign-currency Issuer Default Rating (IDR) at 'AAA' with a stable outlook. The rating reflects its exceptionally strong external and fiscal balance sheets, high per capita income, favorable business environment and sound macroeconomic policy framework.

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Hong Kong – Singapore Trade

Source: Census and Statistics Department of Hong Kong

Total exports from Hong Kong to Singapore increased by 13.3% from HK$61.0 billion in 2017 to HK$69.2 billion in 2018. The top three export categories to Singapore were: (1) electrical machinery, apparatus and appliances, and electrical parts thereof (+12.3%), (2) telecommunications and sound recording and reproducing apparatus and equipment (+14.6%), and (3) office machines and automatic data processing machines (+18.4%), which represented 61.8% of total exports to Singapore.

Source: Census and Statistics Department of Hong Kong

ECIC Underwriting Experience

The Hong Kong Export Credit Insurance Corporation (HKECIC) imposes no restrictions on covering Singaporean buyers. For 2018, the number and amount of credit limit applications on Singapore decreased 8.2% and increased 3.0% respectively, while insured business increased by 52.4%. The Corporation’s underwriting experience on Singapore has been satisfactory, with no claim payment or payment difficulty case recorded during the past 12 months (from October 2018 to September 2019).

 
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Last update: 4 October 2019

* Most recent data available
Source: Economist Intelligence Unit (EIU), World Trade Organisation (WTO)

Political Highlights

Mali has been experiencing instability and conflict since the military coup in 2012. These events were followed by the deployment of French-led military forces in January 2013, which handed over to the United Nations Multidimensional Integrated Stabilization Mission in Mali (MINUSMA) in July 2014. President Ibrahim Boubacar Keïta, first elected in 2013, was re-elected for a second term in August 2018. However, anti-government sentiment has been increasing following a rise in interethnic violence between Fulani pastoralists and farming communities. The difficult security situation impacts millions of Malians, weighing on economic activity and development prospects. In September 2019, to help strengthen the resiliency of the economy, the IMF has approved financial assistance of about US$ 200 million to the country under the Extended Credit Facility (ECF).

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Economic Trend

^Estimate *Forecast 
Source: International Monetary Fund (IMF)

Mali is a vast and landlocked country. It is also a low-income country with an undiversified economy that is vulnerable to raw material price fluctuations. Despite the difficult security situation, the Malian economy has performed reasonably well in recent years, with real annual GDP growth averaging about 5% and inflation was contained. However, with the population expanding by about 3% annually, GDP per capita growth has been modest. In February 2019, Moody's has assigned its first-time local and foreign currency issuer ratings of B3 to the Government of Mali with a stable rating outlook. The rating reflects Mali’s very low income levels and limited diversification weigh on economic strength, while the economy continues to benefit from international financial support, in place since the political and security crisis in 2012.

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Hong Kong – Mali Trade

Source: Census and Statistics Department of Hong Kong

Total exports from Hong Kong to Mali decreased by 22.8% from HK$226 million in 2017 to HK$175 million in 2018. The top three export categories to Mali were: (1) telecommunications and sound recording and reproducing apparatus and equipment (-21.3%), (2) office machines and automatic data processing machines (-33.2%), and (3) electrical machinery, apparatus and appliances, and electrical parts thereof (-54.0%), which represented 96.3% of total exports to Mali.

Source: Census and Statistics Department of Hong Kong

HKECIC Underwriting Experience

The Hong Kong Export Credit Insurance Corporation (HKECIC) offers coverage on Mali buyers with payment terms in Irrevocable Letter of Credit (ILC), with the exception of those under sanctions. In the past 12 months (from October 2018 to September 2019), there was no insured business on Mali.

 
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Last update: 3 October 2019

Source: Economist Intelligence Unit

Political Highlights

Austria is a parliamentary republic. The president is the head of the state, directly elected for a maximum of two six-year terms. Federal chancellor is the head of government appointed by the president. The national legislature is a bicameral parliament consisting of the National Council (lower house) with 183 members and the Federal Council (upper house) with 62 members. Former federal chancellor, Sebastian Kurz and his right-wing coalition government defeated by a motion of no-confidence in May 2019, as his coalition partner, the Freedom Party, became embroiled in a corruption scandal. An early general election was held in September 2019 and Kurz’s conservative Austrian People's Party won 71 out of 183 seats in parliament. Kurz will resume his job as Austria’s chancellor, but he will need coalition partners to form a new government.

Economic Trend

* Forecast ^ Estimate
Source: Economist Intelligence Unit (EIU)

Austria is an export-oriented country and its trade relations are dominated by Germany, which accounted for about a third of total imports and exports. The country is among the most advanced countries in the world in terms of its telecommunications and internet infrastructure. The economy reported a robust growth in 2016-18 but growth is expected to decelerate in 2019 owing to weaker German economy and sluggish trade growth. Meanwhile, the country has reported current account surpluses since 2002 and its GDP per capita is one of the highest in the European Union (EU). In May 2019, Fitch affirmed Austria's long-term foreign-currency Issuer Default Rating (IDR) at 'AA+' with a positive outlook. Austria's 'AA+' rating is supported by a rich, diversified, open, high-value-added economy with strong political and social institutions.

Hong Kong – Austria Trade

Source: Census and Statistics Department of Hong Kong

Total exports from Hong Kong to Austria increased by 26.3% from HK$5.03 billion in 2017 to HK$6.35 billion in 2018. The top three export categories to Austria were: (1) telecommunications and sound recording and reproducing apparatus and equipment (+75.1%), (2) electrical machinery, apparatus and appliances, and electrical parts thereof (+16.4%), and (3) articles of apparel and clothing accessories (+0.6%), which represented 71.7% of total exports to Austria.

Source: Census and Statistics Department of Hong Kong

HKECIC Underwriting Experience

The Hong Kong Export Credit Insurance Corporation (HKECIC) imposes no restrictions on covering Austria buyers. For 2018, the number and amount of credit limit applications on Austria was unchanged and increased 162.3% respectively, while insured business decreased by 7.2%. Major insured products were chemical products, clothing and electronics, which represented 53.0% of HKECIC’s insured business on Austria. The Corporation’s underwriting experience on Austria has been satisfactory, with no payment difficulty or claim payment case reported in the past 12 months  (September 2018 to August 2019).

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Last update: 30 September 2019      

* Most recent data available
Source: Economist Intelligence Unit (EIU), World Trade Organization (WTO)

Political Highlights

Romania is a parliamentary republic. The president is the head of the state elected by universal suffrage for a five-year term. With the promise to strengthen the independence of judicial system and tackle corruption, Klaus Iohannis from the National Liberal Party (NLP) won the presidential election in 2014. However, Centre-left Social Democratic Party (PSD) and coalition partner Alliance of Liberals and Democrats (ALDE) are the main parliamentary and governing party and it won the parliamentary elections in 2016. There were waves of anti-government protests in between 2017-19, on reforming the judicial laws and criminal codes proposed by PSD and voted in the Parliament, that weakens the effectiveness and independence of the judiciary. After two PSD-backed Prime Ministers stepped down in one year, the President appointed Viorica Dancila, who also ties with PSD, as prime minister in January 2018, but the political and social environment remained tense. Romania joined the EU on 1 Janurary 2007 but it is not yet a member of the euro area. The government has targeted to adopt the euro by 2024 once it fulfils the necessary conditions in public finances, price stability, exchange rate & long-term interest rate criteria, and compatible legislation. The next presidential election will be held in November 2019 while the next parliamentary election will be held at the end of 2020.

Economic Trend

* Forecast ^ Estimate  
Source: Economist Intelligence Unit (EIU)

Romania is one of the largest domestic markets in east-central Europe. Supported by an increase in agricultural production, the country has achieved two major targets in 2018 with GDP increased by 4.1% to EUR 202 billion and GDP per capita equivalent to more than EUR10,000. The country becomes EU’s 15th  largest economy that overtaking Portugal for the first time in decades. Romania has undertaken a strong fiscal consolidation and reduced its macroeconomic imbalances since 2010. Following years of austerity measures, the country has relaxed its fiscal policy. In May 2019, Fitch affirmed Romania’s long-term foreign and local currency issuer default ratings at “BBB-“with stable outlook. The affirmation reflects the country’s moderate levels of government debt., and GDP per capita and human development indicators were above 'BBB' category peers. There are balanced against twin budget and current accounts deficits, net external indebtedness that was higher than its rating peers and pro-cyclical fiscal policy that poses risks to macroeconomic stability.

Hong Kong – Romania Trade

Source: Census and Statistics Department of Hong Kong

Total exports from Hong Kong to Romania increased by 14.7% from HK$3,258 million in 2017 to HK$3,736 million in 2018. The top three export categories to Romania were: (1) electrical machinery, apparatus and appliances, and electrical parts thereof (+19.5%), (2) telecommunications and sound recording and reproducing apparatus and equipment (+12.5%), and (3) office machines and automatic data processing machines (-89.8%), which represented 85.0% of total exports to Romania.

Source: Census and Statistics Department of Hong Kong

HKECIC Underwriting Experience

The Hong Kong Export Credit Insurance Corporation (HKECIC) imposes no restrictions on covering Romania buyers. For 2018, the number and amount of credit limit applications on Romania decreased 57.8% and 55.0% respectively, while insured business increased by 27.8%. Major insured products were electronics, jewellery and electrical appliances, which represented 80.0% of HKECIC’s insured business on Romania. The Corporation’s underwriting experience on Romania has been satisfactory, with one payment difficulty case reported in the past 12 months (September 2018 to August 2019).

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Last update: 17 September 2019

* Most recent data available 
Source: Economist Intelligence Unit (EIU)

Political Highlights

Iran is a theocratic country that mixes religion with politics. According to its constitution, its laws and regulations must be based on Islamic criteria. The supreme leader, who has no fixed terms, exerts ideological and political control over a system dominated by clerics. The current supreme leader, Ayatollah Ali Khamenei, was chosen by a directly elected body of religious leaders, the Assembly of Experts, in 1989. The president is the head of the state and the country’s second-highest-ranking official, elected by universal suffrage for four years term for a maximum of two terms. Hassan Rouhani was elected as president in June 2013 and subsequently won a second four-year term in the May 2017 election. Rouhani’s position has weakened following the US's withdrawal from the Joint Comprehensive Plan of Action (JCPOA) in May 2018, the nuclear deal agreed between Iran and world powers in 2015. The next legislative election will take place in 2020, followed by a presidential poll in 2021.

Economic Trend

* Forecast ^ Estimate
Source: Economist Intelligence Unit (EIU)

Iran has the second largest economy in the Middle East and North Africa (MENA) region after Saudi Arabia; and the second largest population after Egypt. Its economy is characterized by a large hydrocarbon sector, small scale agriculture and services sectors, and a noticeable state presence in manufacturing and financial services. The economy slid into a recession in 2018-19 in the wake of the US decision to withdraw from JCPOA and followed by reintroduction of US sanctions in November 2018. According to the World Bank, in the medium term, the economy is set to experience a downward trajectory as oil exports are expected to fall. The elevated tensions between the US and Iran have raised the prospect of disruptions to oil and gas shipments in the Gulf region. Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) mitigated the decline in Iran's production through ramping up output within existing quotas or redistribution of quotas.

Hong Kong – Iran Trade

Source: Census and Statistics Department of Hong Kong

Total exports from Hong Kong to Iran increased by 0.5% from HK$1.80 billion in 2017 to HK$1.81 billion in 2018. The top three export categories to Iran were: (1) telecommunications and sound recording and reproducing apparatus and equipment (+16.3%), (2) electrical machinery, apparatus and appliances, and electrical parts thereof (-33.0%), and (3) office machines and automatic data processing machines (+44.9%), which represented 76.0% of total exports to Iran.

Source: Census and Statistics Department of Hong Kong

HKECIC Underwriting Experience

The Hong Kong Export Credit Insurance Corporation (HKECIC) offers coverage on Iran buyers with payment terms in Irrevocable Letter of Credit (ILC), with the exception of those under sanctions. In the past 12 months (from September 2018 to August 2019), there was no insured business on Iran.

Please click here to download the charts (PDF format).

Last update: 1 September 2019

Source: Economist Intelligence Unit

Political Highlights

Lithuania gained its independence from the Soviet Union in 1990. The president, directly elected for a five-year team by universal suffrage, is the head of state. The president appoints the prime minister who serves as the head of the government and nominates the rest of the ministerial cabinet. Lithuania's former central banker, Gitanas Nauseda, sworn-in as President in July 2019. The legislature is a unicameral parliament, the Seimas, with 141 members elected for a four-year team. After the general election held in October 2016, the Lithuanian Farmers and Greens Union (LVZS) and the Social Democratic Party (LSDP) formed a coalition government. However, the LSDP pulled out from the government in September 2017, leaving the LVZS-nominated prime minister Saulius Skvernelis to in charge of a minority administration. In July 2019, the LVZS signed a new coalition agreement with three other parties. The government coalition now has a majority in the Seimas. The next parliamentary election is scheduled for October 2020.

Economic Trend

 * Estimate ^ Forecast
Source: International Monetary Fund (IMF)

Lithuania is one of the Baltic states, along with Latvia and Estonia. It became a member of the euro zone in January 2015. The economy was benefited from increasing trade integration as well as diversification of its export markets away from Russia. Economic growth expanded by 3.5% in 2018, supported by a strong contribution in net exports and private consumption growth. Remarkably, the Lithuania’s government has achieved a higher fiscal surplus for the third year in a row. However, growth over the next few years is expected be constrained by the moderating labor supply and decelerating exports, according to the IMF. In February 2019, Standard & Poor’s affirmed its long- and short-term foreign and local currency sovereign credit ratings on Lithuania at ‘A/A-1' with a stable outlook. The ratings were supported by the relatively resilient institutions, a sound medium-term growth outlook, strong external profile, moderate general government debt, and the country's euro zone membership.

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Hong Kong – Lithuania Trade

Source: Census and Statistics Department of Hong Kong

Total exports from Hong Kong to Lithuania increased by 64.8% from HK$ 1,138 million in 2017 to HK$ 1,876 million in 2018. The top three export categories to Lithuania were: (1) telecommunications and sound recording and reproducing apparatus and equipment (+110.6%), (2) office machines and automatic data processing machines (+23.8%), and (3) office machines and automatic data processing machines (+2.5%), which represented 89.6% of total exports to Lithuania.

Source: Census and Statistics Department of Hong Kong

HKECIC Underwriting Experience

The Hong Kong Export Credit Insurance Corporation (HKECIC) imposes no restrictions on covering buyers in Lithuania. For 2018, the number and amount of credit limit applications decreased by 26.3% and increased by 9.2% respectively, while insured business increased by 30.1%. Major insured products were electronics, clothing and printed matters, which represented 84.0% of HKECIC’s insured business on Lithuania. The Corporation’s underwriting experience on Lithuania has been satisfactory, with no claim payment or payment difficulty case reported during the past 12 months (from September 2018 to August 2019).

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Last update: 1 September 2019

*Most recent data available
Source: Economist Intelligence Unit

Political Highlights

The island of Cyprus was occupied by Britain in 1878 and became a British colony in 1925. Cyprus became an independent nation in 1960, which is recognized by the international community. Turkish Cypriots established an independent administration on the northern part of the country in 1975 and declared the formation of the Turkish Republic of Northern Cyprus (TRNC) in 1983, which was recognized only by Turkey.

Cyprus is a unitary republic where the president, elected for a five-year term, is both the head of state and chief of government. Current president, Nicos Anastasiades of the Democratic Rally, has been in power since 2013 and was re-elected for a second term in 2018. The country has a unicameral parliamentary system with 80 seats in the House of Representatives. In the parliamentary election held in May 2016, the Democratic Rally won the largest number of seats. The next parliamentary election is due in May 2021.

Economic Trend

* Estimate ^ Forecast
Source: International Monetary Fund (IMF)

The economy of Cyprus relies on the services sector and is highly vulnerable to external shocks. The economy fell into recession in 2009 amid the global financial crisis, and subsequently requested an economic bailout programme from the European Commission, European Central Bank and the IMF in July 2012. Following its exit from the international bailout programme in March 2016, the country regained access to international financial markets. The economy grew by 3.9% in 2018, driven by tourism, professional services and foreign investment in construction as well as continued strength in private consumption. The IMF viewed that, over the medium term, Cyprus’s economic growth is projected to slow to its long-run potential rate of around 2.5%, as the transitory effects of the investment boom gradually dissipate.

Hong Kong – Cyprus Trade

Source: Census and Statistics Department of Hong Kong

Total exports from Hong Kong to Cyprus decreased by 68.0% from HK$803 million in 2017 to HK$257 million in 2018. The top three export categories to Cyprus were: (1) telecommunications and sound recording and reproducing apparatus and equipment (+51.5%), (2) office machines and automatic data processing machines (+59.9%), and (3) electrical machinery, apparatus and appliances and electrical parts thereof (+28.8%), which represented 77.7% of total exports to Cyprus.

Source: Census and Statistics Department of Hong Kong

HKECIC Underwriting Experience

The Hong Kong Export Credit Insurance Corporation (HKECIC) imposes no restrictions on covering buyers in Cyprus. For 2018, the number and amount of credit limit applications increased by 70.0% and decreased by 56.1% respectively, while insured business increased by 120.8%. The Corporation’s underwriting experience on Cyprus has been satisfactory, with no claim payment or payment difficulty case reported during the past 12 months (August 2018 to July 2019).

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Last update: 28 August 2019

Source: Economist Intelligence Unit (EIU)

Political Highlights

Turkey has shifted the political system from a parliamentary to a presidential system in 2018. Recep Tayyip Erdogan was re-elected as president in June 2018 to a new five-year term. The national legislature is a unicameral meclis (parliament) consisting of 600 members directly elected for a five-year term. Justice and Development Party (AKP) lead by Erdogan came into power since 2002 and secured a coliation majority with the right-wing Nationalist Action Party (MHP) in June 2018. However, in the local election, AKP lose control of Turkey’s two biggest cities, the capital Ankara in March 2019 and its commercial hub of Istanbul in June 2019. The next parliamentary and presidential elections are due to be held in June 2023. On the diplomatic front, tensions between the US and Turkey is also deepening amid a delivery of the S-400 missile defense system by Russia.

Economic Trend

* Forecast ^ Estimate
Source: Economist Intelligence Unit (EIU)

Turkish economy decelerated sharply from 7.3% in 2017 to 2.8% in 2018, following the currency crisis in August 2018. In 2018, the currency lost about 40% of its value. For years, Erdogan adopted his financial theory of lowering borrowing costs that made the country overheated. In July 2019, Erdogan replaced the central bank governor after he failed to follow orders to lower interest rates. In July 2019, Fitch downgraded Turkey’s long-term debt rating from BB to BB- with a negative outlook. The downgrade reflects the removal of its central bank governor highlights a deterioration in institutional independence and economic policy coherence and credibility, jeopardising the inflow of foreign capital needed to meet Turkey’s large external financing requirement and worsening economic outcomes.

Hong Kong – Turkey Trade

Source: Census and Statistics Department of Hong Kong

Total exports from Hong Kong to Turkey increased by 3.3% from HK$7.50 billion in 2017 to HK$7.75 billion in 2018. The top three export categories to Turkey were: (1) telecommunications and sound recording and reproducing apparatus and equipment (+26.1%), (2) electrical machinery, apparatus and appliances, and electrical parts thereof (-13.3%), and (3) office machines and automatic data processing machines (-39.6%), which represented 70.3% of total exports to Turkey.

Source: Census and Statistics Department of Hong Kong

HKECIC Underwriting Experience

The Hong Kong Export Credit Insurance Corporation (HKECIC) imposes no restrictions on covering Turkey buyers. For 2018, the number and amount of credit limit applications on Turkey increased 12.4% and decreased 15.0% respectively, and insured business decreased by 12.9%. Major insured products were electronics, electrical appliances and chemical products, which represented 82.4% of HKECIC’s insured business on Turkey. The Corporation’s underwriting experience on Turkey has been satisfactory with no payment difficulty or claim payment case reported during the past 12 months (from August 2018 to July 2019).

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Last update: 15 August 2019       

*Most recent data available
Source: Economist Intelligence Unit (EIU), World Trade Organization (WTO)

Political Highlights

Republic of North Macedonia (North Macedonia) is a parliamentary republic. Stevo Pendarovski won the presidential runoff in May 2019 supported by the governing coalition of Social Democratic Union Party (SDSM) and Democratic Union for Integration (DUI). The national legislature is a unicameral assembly (Sobraine). The coalition government, led by the SDSM comprises of most ethnic Albanian members of parliament (MPs), giving it a 68-seat majority in the 120-seat parliament. The country’s former name “Macedonia” hindered its accession to the European Union (EU) and the North Atlantic Treaty Organization (NATO) as Greek objection to Macedonia’s name. Greek insisting it implies territorial claim on the northern Greek province of the same name. In June 2018, the two countries announced their agreement, whereby Macedonia would change its constitutional name to the Republic of North Macedonia in exchange for Greece unblocking North Macedonia's EU and NATO accession. The top agenda for the government included securing NATO and EU accession, increasing social transfers and improving the transparency of the public finances. The next parliamentary and presidential elections are due to be held in 2020 and 2024 respectively.

Economic Trend

* Forecast ^ Estimate

Source: Economist Intelligence Unit (EIU)

North Macedonia has a small open economy which is closely linked to Europe as a major export market and source of investment. Driven by German demand and increase in manufacturing capacity, the country’s trade deficit has narrowed markedly from 28.7% of GDP in 2008 to 16.2% in 2018. However, economic growth slowed in 2018 amid lower global demand. In June 2019, Fitch has upgraded North Macedonia's long-term foreign and local-currency ratings Issuer Default Ratings (IDRs) to 'BB+' from 'BB' with stable outlook. The upgrade reflects the country’s improved governance standards and reforms in the country that facilitated further progress towards NATO membership and the opening of EU accession negotiations, which support investor confidence and act as policy anchors for sustained reform and macroeconomic stability.

Hong Kong – North Macedonia Trade

Source: Census and Statistics Department of Hong Kong

Total exports from Hong Kong to North Macedonia increased by 2.8% from HK$145 million in 2017 to HK$149 million in 2018. The top three export categories to North Macedonia were: (1) telecommunications and sound recording and reproducing apparatus and equipment (+17.4%), (2) office machines and automatic data processing machines (-57.7%), and (3) photographic apparatus, equipment and supplies and optical goods; watches and clocks (-9.3%), which represented 91.2% of total exports to North Macedonia.

Source: Census and Statistics Department of Hong Kong

HKECIC Underwriting Experience

The Hong Kong Export Credit Insurance Corporation (HKECIC) offers coverage on North Macedonia buyers with payment terms in Irrevocable Letter of Credit (ILC). In the past 12 months (from August 2018 to July 2019), there was no insured business on North Macedonia.

Please click here to download the charts (PDF format).

Last update: 7 August 2019

Sources: Economist Intelligence Unit (EIU), Central Intelligence Agency (CIA) 

Political Highlights

Latvia is a parliamentary republic. The president is the head of state and is elected by the Saeima (parliament) for a period of four years and a maximum of two consecutive terms. In May 2019, Egils Levits was elected by the Saeima as the country’s new president.  He is a judge of the European Court of Justice.  The president holds a largely ceremonial post and appoints the prime minister and ambassadors. The legislature is the 100-seat unicameral Saeima, which sits for a four-year term and is elected by proportional representation through party lists. The next legislative election due in 2022.

Economic Trend

^Estimate *Forecast  
Source: International Monetary Fund (IMF)

Latvia has one of the smallest economies among the eight central and eastern European countries that joined the European Union (EU) in 2004. Latvia's economic growth reached 4.6% and 4.8% in 2017 and 2018 respectively, led by a pick-up of private investment along with a boom in EU-funded construction and strong growth in IT and communications. Latvia has one of the lowest debt-to-GDP ratios in the EU as well as generally contained budget deficits. In May 2019, Moody’s affirmed Latvia's long-term issuer ratings at A3 with a stable outlook. The affirmation reflects the country’s low and declining levels of government debt, strong growth performance through the economic cycle and moderate susceptibility to geopolitical risks. Moody’s expect GDP growth to slow in coming years, but remain robust at 3.2% and 2.8% in 2019 and 2020 respectively.

Hong Kong – Latvia Trade

Source: Census and Statistics Department of Hong Kong

Total exports from Hong Kong to Latvia increased by 17.7% from HK$718 million in 2017 to HK$845 million in 2018. The top three export categories to Latvia were: (1) electrical machinery, apparatus and appliances, and electrical parts thereof (-10.0%), (2) telecommunications and sound recording and reproducing apparatus and equipment (+55.8%), and (3) office machines and automatic data processing machines (+126.9%), which represented 87.7% of total exports to Latvia.

Source: Census and Statistics Department of Hong Kong

HKECIC Underwriting Experience

The Hong Kong Export Credit Insurance Corporation (HKECIC) imposes no restrictions on covering Latvia buyers. In the past 12 months (from August 2018 to July 2019), there was no claim payment or payment difficult case reported against Latvia buyers.

Please click here to download the charts (PDF format).

Last update: 5 August 2019

Source: Economist Intelligence Unit

Political Highlights

Israel is a parliamentary democracy. The president is the head of state elected by the majority of Knesset (parliament) for a seven-year term. The current president, Reuven Rivlin, took office in July 2014. The president appoints the prime minister upon the recommendation of party representatives in the Knesset. The prime minister serves as the head of the government and appoints the ministerial cabinet. The legislature is a unicameral parliament, the Knesset, with 120 members directly elected for a four-year team under a system of proportional representation. In the parliamentary election in April 2019, Netanyahu-led Likud party and his political alliance Blue and White party each secured 35 seats in the Knesset, but failed to form a coalition government. Subsequently, the Israeli Parliament voted to dissolve itself and a new election has been called off for 17 September 2019.

Economic Trend

* Estimate  ^ Forecast
Source: International Monetary Fund (IMF)

Israel has a market economy with a thriving high-technology sector, which accounts for more than 40% of total manufacturing exports. The development of industries such as life sciences, water technologies, communication, military equipment and semiconductor is supported by heavy investment in technology and a well-educated labor force. Since the mid-2000s, economic growth has averaged 3.7% thanks to rises in the working age population and in participation, but labor productivity contributed only 0.8 percentage points on average. The economy expanded 3.3% yr/yr in the first quarter of 2019, up from 3.1% in the preceding quarter. In March 2019, Fitch Ratings has affirmed Israel's long-term foreign-currency Issuer Default Rating (IDR) at 'A+' with a stable outlook. The ratings are supported by the country’s strong external finances, robust macroeconomic performance and solid institutional strength against a government debt/GDP ratio that is high relative to peers and ongoing political and security risks.

Hong Kong – Israel Trade

Source: Census and Statistics Department of Hong Kong

Total exports from Hong Kong to Israel increased by 15.3% from HK$14.6 billion in 2017 to HK$16.9 billion in 2018. The top three export categories to Israel were: (1) non-metallic mineral manufactures (+24.4%), (2) electrical machinery, apparatus and appliances, and electrical parts (+17.5%), and (3) telecommunications and sound recording and reproducing apparatus and equipment (-11.9%), which represented 89.1% of total exports to Israel.

Source: Census and Statistics Department of Hong Kong

HKECIC Underwriting Experience

The Hong Kong Export Credit Insurance Corporation (HKECIC) imposes no restrictions on covering buyers in Israel. For 2018, the number and amount of credit limit applications increased by 10.7% and decreased by 57.9% respectively, while insured business increased by 20.3%. Major insured products were clothing, electronics and metallic products, which represented 51.0% of HKECIC’s insured business on Israel. The Corporation’s underwriting experience on Israel has been satisfactory, with one payment difficulty case reported in the past 12 months (July 2018 to June 2019).

Please click here to download the charts (PDF format).

Last update: 30 July 2019

Source: Economist Intelligence Unit (EIU)

Political Highlights

Republic of Estonia (Estonia) is a parliamentary republic. Current president, Kersti Kaljulaid, sworn in as the country’s first female head of the state in 2016. The legislature is a unicameral assembly (Riigikogu) with 101 members. In March 2019, centre-right opposition Reform Party won the parliamentary election with 34 seats which outperformed the ruling Centre Party, but it failed to gather support to form a coalition government. In April 2019, a coalition government led by Juri Ratas was formed, comprising the Centre Party, the Conservative People's Party of Estonia (EKRE) and the conservative Pro Patria. The next presidential election is due to be held in 2021 and parliamentary election in 2023.

Economic Trend

* Forecast ^ Estimate
Source: Economist Intelligence Unit (EIU)

Estonia is one of the Baltic states, along with Latvia and Lithuania, and is one of the least populous member states of the European Union (EU). The country is a small and highly open economy. Economic growth has grown over 3.5% in the past 3 years, supported by strong private and public investment. The country stands out in the EU for its lowest level of gross government debt, which stood at 8.3% of GDP in 2018. However, potential growth over the medium term will be constrained by labor supply and slow productivity growth. In May 2019, Moody's affirmed Estonia's issuer ratings at A1 with a stable outlook. The affirmation reflects the economy’s dynamism and resilience, low government debts and susceptibility to geopolitical risks.

Hong Kong – Estonia Trade

Source: Census and Statistics Department of Hong Kong

Total exports from Hong Kong to Estonia increased by 32.1% from HK$1,150 million in 2017 to HK$1,518 million in 2018. The top three export categories to Estonia were: (1) articles of apparel and clothing accessories (+18.3%), (2) telecommunications and sound recording and reproducing apparatus and equipment (+57.5%), and (3) electrical machinery, apparatus and appliances, and electrical parts thereof (+59.6%), which represented 71.1% of total exports to Estonia.

Source: Census and Statistics Department of Hong Kong

HKECIC Underwriting Experience

The Hong Kong Export Credit Insurance Corporation (HKECIC) imposes no restrictions on covering Estonia buyers. The Corporation’s underwriting experience on Estonia has been satisfactory with no payment difficulty or claim payment case reported during the past 12 months (from July 2018 to June 2019).

Please click here to download the charts (PDF format).

Last update: 23 July 2019

* Most recent data available
Source: Economist Intelligence Unit (EIU), World Trade Organization (WTO)

Political Highlights

Panama is a presidential republic wherein the president is both the head of state and head of government elected by universal suffrage for a five-year term. The president appoints a vice-president and a cabinet. Laurentino Cortizo from the Partido Revolucionario Democrático (PRD) party won the 2019 presidential election and was sworn in as president on 1 July 2019. The country adopts an unicameral legislative consisting of a 71-member National Assembly elected by popular vote to serve a five-year term. In the parliamentary election held in May 2019, PRD won a majority in coalition with the Movimiento Liberal Republicano Nacionalista (Molirena), securing a total of 40 seats in the National Assembly. The next legislative and presidential elections are due in May 2024.

Economic Trend

^Estimate *Forecast   
Source: International Monetary Fund (IMF)

Panama has a well-developed service sector centered on the Panama Canal, related logistics and distribution services, as well as insurance, banking and tourism. The sector accounts for about three-quarters of the country’s economic output. The country is a fully dollarized economy in which the US dollar is legal tender due to the country’s close links with the United States. Inflationary pressure is relatively low in the region. While economic growth decelerated in 2018, partly attributed to the slowing construction sector arising from a strike in the first half of the year, it is expected to pick up in 2019 on the back of the recovery of the construction sector and ramping up of the mining sector.

In April 2019, S&P raised its long-term sovereign credit ratings on Panama to 'BBB+' from 'BBB' with a stable rating outlook. The upgrade reflects many years of rapid GDP growth, above the pace of its rating peers, and economic diversification that have boosted per capita income and helped strengthen the resilience of Panama's small, open economy.

Hong Kong – Panama Trade

Source: Census and Statistics Department of Hong Kong

Total exports from Hong Kong to Panama increased by 33.1% from HK$1,540 million in 2017 to HK$2,050 million in 2018. The top three export categories to Panama were: (1) telecommunications and sound recording and reproducing apparatus and equipment (+62.2%), (2) photographic apparatus, equipment and supplies and optical goods, watches and clocks (+7.3%), and (3) office machines and automatic data processing machines (+574.0%), which represented 73.3% of total exports to Panama.

Source: Census and Statistics Department of Hong Kong

HKECIC Underwriting Experience

The Hong Kong Export Credit Insurance Corporation (HKECIC) imposes no restrictions on covering buyers in Panama. For 2018, the number and amount of credit limit applications decreased by 1.6% and 37.1% respectively, and insured business decreased by 14.2%. Major insured products were clothing, toys and travel goods, which represented 83.8% of HKECIC’s insured business on Panama. The Corporation’s underwriting experience on Panama has been satisfactory, with no payment difficulty or claim payment case reported during the past 12 months (from July 2018 to June 2019).

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Last update: 22 July 2019

Source: Economist Intelligence Unit (EIU)

Political Highlights

Belarus declared its independence from the Soviet Union in 1991. The country is a post-communist state, headed by president Alyaksandar Lukashenka, who has been in office since 1994. He was re-elected in October 2015 with 83.5% of the popular vote. The national legislature is a bicameral parliament consisting of the Council of the Republic (upper house) with 64 members and the House of Representatives (lower house) with 110 members. The political opposition is limited in size, and is composed of only a handful of parties and movements that have no chance of accessing power. The next presidential and legislative elections are scheduled for 2020. 

Economic Trend

^Estimate *Forecast  
Source: International Monetary Fund (IMF)

The cyclical recovery of the Belarusian economy continued in 2018 with real GDP growth reaching 3.0%. Higher oil prices and robust external demand have supported exports. Economic growth has been accompanied by an impressive fall in the number of households below the poverty line and an increase in household income. However, the country remains heavily relied on loans from Russia and Russian-led organizations. Over 40% of Belarus' government debt is to Russia, and Russia's willingness to extend bilateral financing to Belarus has been an important factor enabling Belarus to meet its financial obligations on time and in full. In April 2019, S&P affirmed its 'B/B' long- and short-term foreign and local currency sovereign credit ratings on Belarus with a stable outlook. The ratings on Belarus remain supported by the financial assistance it receives from the Russian government, despite recurring disputes between the two countries.

Hong Kong – Belarus Trade

Source: Census and Statistics Department of Hong Kong

Total exports from Hong Kong to Belarus increased by 20.0% from HK$ 678 million in 2017 to HK$ 813 million in 2018. The top three export categories to Belarus were: (1) telecommunications and sound recording and reproducing apparatus and equipment (+9.5%), (2) office machines and automatic data processing machines (+98.4%), and (3) electrical machinery, apparatus and appliances, and electrical parts thereof (+41.2%), which represented 94.8% of total exports to Belarus.

Source: Census and Statistics Department of Hong Kong

HKECIC Underwriting Experience

The Hong Kong Export Credit Insurance Corporation (HKECIC) offers coverage on Belarus buyers with payment terms in Irrevocable Letter of Credit (ILC), with the exception of those under sanctions. In the past 12 months (from July 2018 to June 2019), there was no insured business on Belarus.

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Last update: 18 July 2019

Source: Economist Intelligence Unit (EIU)

Political Highlights

Syrian Arab Republic (“Syria”) is a republic where the president is elected for a seven-year term. The president appoints the vice-president, the prime minister and the council of ministers. The current president, Bashar al-Assad, is also commander-in-chief of the armed forces and secretary-general of the Baath party. In 2011, Syria’s government faced an unprecedented challenge to its authority when pro-democracy protests erupted throughout the country. Protesters demanded an end to the authoritarian practices of the Assad regime, in place since Assad’s father, Ḥafiz al-Assad, became president in 1971. The conflict had expanded into a full-fledged civil war. Despite international efforts to end the civil war, a comprehensive peace deal is likely to remain elusive. Faced with severely diminished resources and ongoing international sanctions, the regime will remain reliant on financial support from Iran and Russia.

Economic Trend

^Estimate *Forecast  

Source: Economist Intelligence Unit (only data from 2018 is available)

The conflict in Syria continues to take a heavy toll on the life of Syrian people and on the Syrian economy. The scale of destruction after nearly eight years of conflict is enormous, with economic activity held back by poor harvests, depressed oil output and the exodus of 5 million Syrian refugees. According to the World Bank, cumulative GDP loss is estimated at US$ 226 billion from 2011 to 2016. The impact of the Syrian crisis on its neighboring countries, in particular Lebanon and Jordan, has been significant where conservative estimates put the proportion of Syrian refugees at 25% and 10% of the countries’ populations respectively. A multi-donor trust fund, the Lebanon Syria Crisis Trust Fund (LSCTF), managed by the World Bank was established in 2014 with an aim to provide grant financing to projects that mitigate the impact of the Syrian crisis.

Hong Kong – Syria Trade

Source: Census and Statistics Department of Hong Kong

Total exports from Hong Kong to Syria decreased by 5.5% from HK$ 13.8 million in 2017 to HK$ 13.0 million in 2018. The top three export categories to Syria were: (1) professional, scientific and controlling instruments and apparatus (+63.3%), (2) telecommunications and sound recording and reproducing apparatus and equipment (+734.9%), and (3) electrical machinery, apparatus and appliances, and electrical parts thereof (-65.9%), which represented 57.7% of total exports to Syria.

Source: Census and Statistics Department of Hong Kong

HKECIC Underwriting Experience

The Hong Kong Export Credit Insurance Corporation (HKECIC) currently does not provide cover on Syrian buyers.

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Last update: 17 July 2019

Source: Economist Intelligence Unit (EIU), World Trade Organization (WTO) 

Political Highlights

Jamaica declared its independence from Britain in 1962 and became a member of the British Commonwealth. The country is a constitutional monarchy with Queen Elizabeth II as head of state. She is represemted by the Governor-General, Sir Patrick Linton Allen since 2009, who was appointed on the recommendation of the Prime Minister. The national legislature is made up of a bicameral with 63-member House of Representatives (the lower house) and 21-member Senate (the upper house), with 13 seats allocated on the advice of the prime minister and eight on the advice of the leader of the opposition. The Prime Minister, Andrew Holness, and his Jamaica Labour Party (JLP) administration secured five-seat parliamentary majority allowing the government to push on with its reform agenda including reducing public debt, maintaining macroeconomic stability, facilitating job creation and improving labour force productivity. The next general election is due in February 2021.

Economic Trend

* Forecast ^ Estimate
Source: International Monetary Fund (IMF)

Jamaica is the largest island and most populated in the English-speaking Caribbean. The country is vulnerable to natural disasters, especially hurricanes, flooding and the effects of climate change. The economy is struggling to low growth, high public debt and exposure to external shocks. In 2013, the government launched a reform program aiming to stabilize the economy, reduce debt, fuel growth, gaining national and international support. According to the World Bank, the country’s debt level remained high but improving. Public debt fell below 100% of GDP in 2018/19 and is expected to decline further to below 60% by 2025/26. In Janurary 2019, Fitch has upgraded Jamaica's long-rerm foreign and local currency issuer default ratings to B+ from B with a stable outlook. The upgrade reflects Jamaica’s track record of large primary surpluses that have resulted in significantly lower general government debt-to-GDP ratio.

Hong Kong – Bosnia and Herzegovina Trade

Source: Census and Statistics Department of Hong Kong

Total exports from Hong Kong to Jamaica decreased by 13.0% from HK$74.8 million in 2017 to HK$65.1 million in 2018. The top three export categories to Jamaica were: (1) telecommunications and sound recording and reproducing apparatus and equipment (-19.7%), (2) electrical machinery, apparatus and appliances, and electrical parts thereof (-6.4%), and (3) general industrial machinery and equipment, and machine parts (-3.7%), which represented 62.0% of total exports to Jamaica.

Source: Census and Statistics Department of Hong Kong

HKECIC Underwriting Experience

The Hong Kong Export Credit Insurance Corporation (HKECIC) imposes no restrictions on covering Jamaica buyers. The Corporation’s underwriting experience on Jamaica has been satisfactory, with one payment difficulty case reported during the past 12 months (from July 2018 to June 2019).

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Last update: 15 July 2019

Source: Economist Intelligence Unit (EIU)

Political Highlights

Republic of Peru (Peru) is a presidential republic with the president serving as both the head of state and head of government for a five-year term. Former Vice President Martin Vizcarra assumed the presidency when his predecessor, Pedro Pablo Kuczynski, resigned in March 2018 amid mounting allegations of corruption. Vizcarra formed a new ministerial cabinet. . The national legislature is made up of a congress, consisting of a 130-member single chamber. Vizcarra’s party, Peruanos Por el Kambio (PPK), only holds a small minority (11 out of 130 seats) in Congress. The political outlook remains challenging given perceptions of political weakness of the government. The next presidential and national legislative elections will take place in April 2021.

Economic Trend

* Forecast ^ Estimate
Source: Economist Intelligence Unit (EIU)

Peru’s two decades of strong economic growth have gradually led to the emergence of a growing middle class. However, the growth of market opportunities remain limited to urban areas. The majority of the population, particularly in rural areas, will continue to have low disposable income. Peru recorded an average annual GDP growth of 3.6% in 2013-17 and EIU expected growth of 4% in 2018-22. Although rapid economic growth over the past two decades has enabled Peru to catch up with the Latin American median in terms of GDP per head, it is still well below that of developed countries. In June 2019, Moody’s affirmed Peru’s long-term foreign-currency and local-currency issuer ratings at A3 with a stable outlook. The rating reflects the country’s moderate economic strength, the government very high fiscal strength and moderate institutional strength.

Hong Kong – Peru Trade

Source: Census and Statistics Department of Hong Kong

Total exports from Hong Kong to Peru increased by 19.7% from HK$3.37 billion in 2017 to HK$4.04 billion in 2018. The top three export categories to Peru were: (1) telecommunications and sound recording and reproducing apparatus and equipment (+24.4%), (2) office machines and automatic data processing machines (+27.0%), and (3) electrical machinery, apparatus and appliances, and electrical parts thereof (+9.9%), which represented 88.8% of total exports to Peru.

Source: Census and Statistics Department of Hong Kong

HKECIC Underwriting Experience

The Hong Kong Export Credit Insurance Corporation (HKECIC) imposes no restrictions on covering Peru buyers. For 2018, the number and amount of credit limit applications on Peru decreased 25.9% and 22.2% respectively, while insured business increased by 3.8%. Major insured products were clothing, office & stationery supplies and toys, which represented 83.6% of HKECIC’s insured business on Peru. The Corporation’s underwriting experience on Peru has been satisfactory with one payment difficultiy case case reported during the past 12 months (from July 2018 to June 2019).

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Last update: 10 July 2019

* Most recent data available
Source: Economist Intelligence Unit, World Trade Organization

Political Highlights

The president of Moldova, directly elected for a four-year team by universal suffrage, is the head of state. Current pro-Russia president Igor Dodon, the former leader of the Party of Socialists of the Republic of Moldova (PSRM), was elected in November 2016. The president appoints the prime minister who serves as the head of government and appoints the cabinet. The country adopts a unicameral legislative with 101 members. In the parliamentary election held in February 2019, no political party won an outright majority, resulting in a hung parliament. In June 2019, Maia Sandu of Party of Action and Solidarity (PAS) was elected as prime minister in a coalition government with PSRM, putting an end to the political turmoil.

Economic Trend

* Estimates ^ Forecast
Source: International Monetary Fund

Moldova is a small lower-middle-income economy. Although it is one of the poorest countries in Europe, Moldova has made significant progress in reducing poverty and promoting inclusive growth since the early 2000s. The economy of Moldova depends mainly on the agricultural and agro-processing sectors as well as remittances from Moldovans working abroad. Remittances from abroad accounts for a quarter of its total GDP, among the highest share in the world. The economy grew by 4.0% in 2018, driven by private consumption bolstered by real growth of disposable income and higher investment on the back of lower inflation and favorable interest rates. Against the background of lower remittances and projected weaker foreign and domestic demand, the economy is expected to grow at a softer pace in 2019, according to the World Bank in May 2019.

Hong Kong – Moldova Trade

Source: Census and Statistics Department of Hong Kong

Total exports from Hong Kong to Moldova increased by 19.2% from HK$168 million in 2017 to HK$200 million in 2018. The top three export categories to Moldova were: (1) telecommunications, audio & video equipment (+41.7%), (2) office machines and automatic data processing machines (-15.5%), and (3) electrical machinery, apparatus and appliances, and electrical parts thereof (+3.6%), which represented 91.8% of total exports to Moldova.

Source: Census and Statistics Department of Hong Kong

HKECIC Underwriting Experience

The Hong Kong Export Credit Insurance Corporation (HKECIC) offers coverage on Moldovan buyers with payment terms in Irrevocable Letter of Credit (ILC), with the exception of those under sanctions. In the past 12 months (from June 2018 to May 2019), there was no insured business on Moldova.

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Last update: 30 June 2019

Source: Economist Intelligence Unit (EIU) 

Political Highlights

Morocco was a French protectorate from 1912 to 1956, when Sultan Mohammed became king. He was succeeded in 1961 by his son, Hassan II, who ruled for 38 years. The current king, Mohammed VI, came to the throne in 1999, on the death of his father King Hassan II. The King is the dominant political figure in the country and oversees the government policies. The national legislature is a bicameral system, consisting of a directly elected 395-seat lower House of Representatives and a 120-seat upper Chamber of Advisers indirectly elected by an electoral college. The king is required to ask a member of the largest party in the parliament to form a government. Saadeddine el-Othmani, of the Justice and Development Party (JDP), was appointed as prime minister and formed a cabinet in March 2017. The next election for the lower house is scheduled for October 2021.

Economic Trend

^Estimate *Forecast  
Source: International Monetary Fund (IMF)

Morocco has made significant efforts in strengthening the resilience of its economy in recent years. While economic activity has weakened since 2018 due to lower agricultural growth, which was only partially compensated by otherwise good performance of nonagricultural activities. The government has been reducing the economy's vulnerability to weather shocks by investing in more efficient technologies in the agricultural sector via the Green Morocco Plan, as well as diversifying the economy. However, the outlook remains subject to significant downside risks, including weaker growth in Morocco’s main trading partners, geopolitical risks, and volatile global financial conditions. In April 2019, S&P affirmed its long- and short-term foreign and local currency sovereign credit ratings on Morocco at 'BBB-/A-3'. The outlook is negative.

Hong Kong – Morocco Trade

Source: Census and Statistics Department of Hong Kong

Total exports from Hong Kong to Morocco increased by 11.5% from HK$1,300 million in 2017 to HK$ 1,449 million in 2018. The top three export categories to Morocco were: (1) telecommunications and sound recording and reproducing apparatus and equipment (+8.0%), (2) electrical machinery, apparatus and appliances, and electrical parts thereof (+40.5%), and (3) office machines and automatic data processing machines (-18.7%), which represented 85.5% of total exports to Morocco.

Source: Census and Statistics Department of Hong Kong

HKECIC Underwriting Experience

The Hong Kong Export Credit Insurance Corporation (HKECIC) imposes no restrictions on covering Morocco buyers. The Corporation’s underwriting experience on Morocco has been satisfactory, with one claim payment case of small amount reported in the past 12 months (June 2018 to May 2019.

Please click here to download the charts (PDF format).

Last update: 28 June 2019

Source: Economist Intelligence Unit

Political Highlights

Following a constitutional change in 2008, the president of Russia was elected by direct popular vote for a six-year term. The president appoints the prime minister with the consent of the State Duma. The prime minister is the head of the government who appoints deputy prime ministers and federal ministers. Currently, political power rests mainly with president Vladimir Putin, who has assumed office since 2000, serving two terms and then a four-year stint as prime minister, before resuming the presidency in 2012 and re-elected for a fourth term in March 2018. The country has a two-chamber legislative with 170 members in the Federation Council (upper house) and 450 members in the State Duma (lower house). The next legislative and presidential elections are due to be held in 2021 and 2024 respectively.
 

Economic Trend

*Estimate ^Forecast
Source: International Monetary Fund

Russia is a major producer of crude oil, petroleum products, and natural gas, and is also a top exporter of metals. Sales of the hydrocarbons account for about 60% of Russia's exports, with metals contributing a little more than 13%. The country's reliance on commodity exports makes it vulnerable to boom and bust cycles that follow the fluctuations in global prices. Economic growth accelerated in 2018, largely due to robust global growth, higher oil prices, one-off construction projects and Russia’s hosting of the FIFA World Cup. Meanwhile, the poverty rate declined slightly to 12.9% in 2018 from 13.3% in 2017, thanks to growth in the main sources of income, wages and pensions.
However, downside risks to Russia’s medium-term growth outlook stem from the potential expansion of economic sanctions, renewed financial turmoil in emerging markets and developing economies, a souring global trade environment, and a dramatic drop in oil prices, according to the World Bank. On the upside, national projects aimed at strengthening human capital and increasing productivity, if well-implemented, could positively affect Russia’s potential growth in the medium-term.

Hong Kong – Russia Trade

Source: Census and Statistics Department of Hong Kong

Total exports from Hong Kong to Russia increased by 33.5% from HK$21.87 billion in 2017 to HK$29.19 billion in 2018. The top three export categories to Russia were: (1) telecommunications and sound recording and reproducing apparatus and equipment (+47.8%), (2) office machines and automatic data processing machines (+6.1%), and (3) electrical machinery, apparatus and appliances and electrical parts (+16.9%), which represented 82.7% of total exports to Russia.

Source: Census and Statistics Department of Hong Kong

HKECIC Underwriting Experience

The Hong Kong Export Credit Insurance Corporation (ECIC) imposes no restrictions on covering Russian buyers, with the exception of those under sanctions. For 2018, the number and amount of credit limit applications decreased by 9.8% and increased by 36.3% respectively, while insured business increased by 22.5%. Major insured products were metallic products, chemical products and electronics, which represented 85.4% of HKECIC’s insured business on Russia. The Corporation’s underwriting experience on Russia has been satisfactory, with no payment difficulty case or claim case reported in the past 12 months (from June 2018 to May 2019).

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Last update: 27 June 2019